|SOCIAL IMPACT BONDS||
Israel is home to approximately 13,000 prisoners who are serving sentences with the country’s 32 prisons. Each year, 7,500 prisoners are released early
There are currently 25,000 prisoners in Israel, serving sentences in one of the country’s 32 prisons. Of these, 60% are criminal (non-security) prisoners and 48% of prisoners are serving more than one sentence.
Each year, of the 6,500 prisoners who are released from jail, between 47-50% will return to jail, usually within one year. This presents high economic and social costs to the government and society of Israel. While many studies have indicated the effectiveness of rehabilitation programs on reducing recidivism, early release and rehabilitation initiatives are still small in scale due to lack of resources.
To tackle this issue, Social Finance Israel plans to issue a Social Impact Bond to fund rehabilitation programs for ex-offenders, in order to reduce crime recidivism and promote the integration of ex-prisoners into civil society. This program will implement a holistic rehabilitation service that tackles all the leading causes of recidivism, and will be customized for each released offender by offering housing support, employment training, soft skills, career placement, and community support.
This Social Impact Bond will be issued to private investors, whose financial return is funded by the economic benefit to the government due to the decrease in recidivism rates. This benefit is based on three directly measureable economic indicators that are triggered when a released prisoner is staying out of prison and persisting in their jobs: a reduction of incarceration costs, decreased costs of crime systems (e.g. court, police) and a growth of individual GDP.